Hi all,

 

I am looking to buy one of the plethora of doubles that Cleveland has. I know a lot of people aren't fond of them, but I think they are so cool and would love to buy one. They are honestly a fantastic deal for a first time home buyer. Live in one half, rent out the other, and pay close to nothing for a mortgage. Plus they are very spacious, laid out well, and are uniquely Cleveland.

 

That said, who has experience with these types of homes? I am looking either on the near west side of CLE or Lakewood. I like CLE Heights, but the gf is a west sider at heart. A few points I would like some help on as I am a first time buyer/renovator.

 

- Are there any common issues with these homes?

- Are there grants or special loans for duplexes?

- How do taxes work?

- Do I have to register being a landlord with the city?

- What kind of insurance do I need?

- Finally, what are things that you feel are worth spending a little more in rent for? (Granite counter tops, stainless steel appliances, hard wood, garage, garden, etc)

 

Thanks for the help in advance!

JG[/member] ^

Yo...I brought a double in Shaker Square 4 years ago and LOVE IT!!  I have no mortgage and make a modest income monthly.  There is the usual expense associated with owning an older home, and def try to get quiet tenants as wood floors carry sound, but I've enjoyed my home these past few years.  It's changed my thinking on doubles and makes me want to save more of them...great way to enter home ownership!  Many of your questions depend on where you choose to buy (how much to invest in upgrades, taxes, etc.) but we can chat more about details offline, just pm me.

^I agree, the Cleveland double is wayyyy underrated. I have friends that rent in a double, and our out of town friends all love them. They say it's much more unique than the typical apartments you find in other cities, especially with the large patios. I am trying to get one before people catch on that they are cool and the prices go up!

^Is it that doubles aren't cool, or is it that the majority of the neighborhoods with doubles aren't cool?

^Is it that doubles aren't cool, or is it that the majority of the neighborhoods with doubles aren't cool?

 

: :roll:

^Is it that doubles aren't cool, or is it that the majority of the neighborhoods with doubles aren't cool?

 

: :roll:

 

You don't agree? Id be willing to bet anything that if all of the doubles in Corlett or Kinsman were in Tremont they would be much more desirable/cool and would be worth a hell of a lot more money.

I think the key for bringing value back to the double is exactly what we're talking about...getting homeowners to buy them again and make them their home, and rent out the other living unit as additional income.  The perception problem for the double is that many of them are owned in large numbers by individuals or companies that view them as income properties and treat them as such, not as homes.  They would be cared for way more, and viewed as assets more often, if more doubles were owner occupied.  This seems to be working well in Shaker Square.

I think the key for bringing value back to the double is exactly what we're talking about...getting homeowners to buy them again and make them their home, and rent out the other living unit as additional income.  The perception problem for the double is that many of them are owned in large numbers by individuals or companies that view them as income properties and treat them as such, not as homes.  They would be cared for way more, and viewed as assets more often, if more doubles were owner occupied.  This seems to be working well in Shaker Square.

 

I agree. Having one of the floors occupied by the owner does make a big difference.

 

Shaker Square and Larchmere definitely seem to have the highest potential for this IMO. They have plenty of doubles and both neighborhoods are in an area with walkable commercial strips with things to do. They also have access to one of the highest frequency rapid stations in the system. 5 minutes between rush hour trains is hard to beat!

The FHA has a program that lets you buy a 2-family for just 3% down IF you live in it for one year.  There is info on their website. 

http://www.iboughtaduplex.com/general-day-to-day-landlord/pros-and-cons-of-owner-occupied-duplex-living.php

Thanks for the references everyone. I agree that the east side far outweighs the west side from a shear numbers perspective. I agree with DM. Look at glen vile, forest hills, fairfax and buckeye. All predominantly doubles. Glenville is sitting pretty w/ UC nearby and buckeye has a really good CDC, so I hope they make a comeback.Anyway, it sucks that most of the double stock is in a neighborhood that hasn't seen the gentrification of the west side...YET. Anyway know if there's an income limit on Cleveland's window and exterior renovation program?

You don't agree? Id be willing to bet anything that if all of the doubles in Corlett or Kinsman were in Tremont they would be much more desirable/cool and would be worth a hell of a lot more money.

 

That's all the more reason to invest now and fix up the doubles in Corlett or Kinsman. Tremont was a mess until the mid-1990s. Bad neighborhoods don't stay bad forever. The risk is how far it will fall before it comes back up again.

John Petkovic ‏@johnpetkovic  8m

Paradise Inn in #cleveland is one of America's oldest gay bars.

@clevelanddotcom #thisiscle #cle @GG9Cleveland

http://www.cleveland.com/entertainment/index.ssf/2014/08/clevelands_paradise_inn_one_of.html

John Petkovic ‏@johnpetkovic  8m

Paradise Inn in #cleveland is one of America's oldest gay bars.

@clevelanddotcom #thisiscle #cle @GG9Cleveland

http://www.cleveland.com/entertainment/index.ssf/2014/08/clevelands_paradise_inn_one_of.html

 

Open a gay bar in a Cleveland double?

I was somewhat confused on that one too  :-o

I've had an owner occupied double in Lakewood for over three years now.  I bought it as a short sale and had to put a lot of work into it.  Since it is a rental and a personal residence only half of what you spend on improvements can be deducted for tax purposes.  For instance, I had a garage built for the property and only half of the cost can be used for depreciation.  If the improvements are solely for the rental unit then you can deduct the full amount.  Doubles usually have separate electric services but the water is not.  This means you will have to pay for your tenants water, which averages about $70/month for the property, and then deduct it as an expense for taxes.  If you plan to make upgrades with the electrical system you may run into problems.  I'm renovating my kitchen right now (which is on the second floor and makes thinks 10x as hard!) and updating a lot of the wiring.  It is a rats nest of wires in the basement.  Tracing the wires and trying to figure out which go to my unit vs. my tenants is a pain.  I've even found that in some cases someone wired both units off the same line...  Tenants will also tend to respect the property more if they know that their landlord is living in the same building.  Also, if your tenant needs something fixed you are already at the property so it makes it easy as well.  The other problem that I have is trying to determine how much I really want to spend on the property.  Yes, it is my personal residence and I want to make it really nice.  However, I know I will not live there forever and I will eventually turn the whole property into a rental.

I've had an owner occupied double in Lakewood for over three years now.  I bought it as a short sale and had to put a lot of work into it.  Since it is a rental and a personal residence only half of what you spend on improvements can be deducted for tax purposes.  For instance, I had a garage built for the property and only half of the cost can be used for depreciation.  If the improvements are solely for the rental unit then you can deduct the full amount.  Doubles usually have separate electric services but the water is not.  This means you will have to pay for your tenants water, which averages about $70/month for the property, and then deduct it as an expense for taxes.  If you plan to make upgrades with the electrical system you may run into problems.  I'm renovating my kitchen right now (which is on the second floor and makes thinks 10x as hard!) and updating a lot of the wiring.  It is a rats nest of wires in the basement.  Tracing the wires and trying to figure out which go to my unit vs. my tenants is a pain.  I've even found that in some cases someone wired both units off the same line...  Tenants will also tend to respect the property more if they know that their landlord is living in the same building.  Also, if your tenant needs something fixed you are already at the property so it makes it easy as well.  The other problem that I have is trying to determine how much I really want to spend on the property.  Yes, it is my personal residence and I want to make it really nice.  However, I know I will not live there forever and I will eventually turn the whole property into a rental.

 

Thanks for sharing your experience!